Saturday, May 26, 2012

Home offices: lessor known facts about a lessor known subject

When people come to our office, usually we talk tax, for this reason we talk a lot about the same or similar subjects, "how much is the standard maximum federal business mileage rate (usually our clients just call it the mileage rate, because I think only people in the industry and IRS agents care about the technical name)?"

One topic that also comes up fairly often are expenses for the business use of your home, usually call the home office deduction.

Usually this expense is taken for a person with a home based business, filing Sch C. This year I fielded a few interesting questions:

1. What if I have a corporation that does not have a formal office space, can I take an expense for the businesses use of my home (office)?

2. What if I have a partnership, the partnership does not have office space and therefore, I must use space in my home...